AUDUSD in a strong bearish trend with the formation of lower highs and lower lows. This formation is continuing towards the downside where we have marked the profit target area. Apart from this, we see slight retracement towards the resistance area, priced at 0.6780. We also see a double bottom forming at this region from where we will go long on the pair. Market has formed a double bottom at this current area. We will be taking the retracing move on AUDUSD as the trend is bearish.

Apart from this, there is trendline indiciation other than the resistance trendline breakout out for buys and having a pending retest, which we might see at the support level. This will give us an additional confluence.

The retracement area which has the confluence with the support is the level of 61.8%. This level pertains to be a solid level for our profit target.

The EMA 50 is also bearish and is getting steeper into the angle. Earlier, it was a flat curve. Now as its turning into a steeper one, we evaluate the strength of the bearish momentum forming. 

RSI is at 31. This needs to be neutralized at the support level in order for us to get long on the position.

On the other hand, as the market is at the over sold level, we might see the formation of some sort of the bullish divergence. This would act as a confluence towards the corrective move.

Taking the corrective move

Sep 07 2022